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Goldman Sachs earnings rise despite weak trading performance

Goldman Sachs on Tuesday reported a slight bump in second-quarter earnings as strong results in underwriting and its own investments offset a hit from lower trading fees for clients.

NEW YORK: Goldman Sachs on Tuesday reported a slight bump in second-quarter earnings as strong results in underwriting and its own investments offset a hit from lower trading fees for clients.

Earnings at the large US investment bank rose 4.7 per cent to $1.95 billion compared with the year-ago period. Goldman pointed to big jumps in both equity and debt underwriting, citing elevated industry-wide activity in both categories.

The company also scored higher financial advisory fees, benefiting from a stream of mergers and acquisitions involving corporate clients.

Goldman notched strong gains in investing and lending, which manages Goldman's own investments in stocks, loans, infrastructure, real estate and other domains. Revenues in this category jumped 46 per cent to $2.1 billion.

But Goldman suffered from the same pullback in equity and bond trading that has marred results throughout the banking industry. Revenues in this category dropped 11.2 per cent from a year ago.

"We are pleased with our results for the quarter in the context of mixed operating conditions during the period," said Goldman chief executive Lloyd Blankfein. "This performance was driven by the diversity, strength and breadth of our global client franchise."

Goldman's earnings translated into $4.10 per share, much above the $3.05 projected by analysts while revenues rose six per cent to $9.13 billion, above the projected $7.97 billion.

Goldman shares rose 1.9 per cent to $170.15 in pre-market trade.

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